ESPN ending sports betting partnership with Penn early, shifting to DraftKings – The New York Times

Sports Business
ESPN reached a 10-year, $2 billion deal in 2023 with Penn Entertainment. Luke Hales / Getty
ESPN announced multiple changes related to its sports betting content Thursday. The sports media giant and Penn Entertainment have agreed to end their U.S. sports betting partnership years earlier than originally planned, the companies said. ESPN has simultaneously named DraftKings its exclusive sportsbook and odds provider. The end of ESPN’s deal with Penn and its new agreement with DraftKings both take effect Dec. 1.
Advertisement
ESPN said the move means DraftKings products will be “exclusively integrated across ESPN’s ecosystem with a full rollout expected in 2026,” with users able to access DraftKings’ sportsbook, daily fantasy and DraftKings Pick6 on ESPN platforms. ESPN Bet — the sportsbook operated by Penn — will shift to a “sports betting content brand with DraftKings Sportsbook integrations,” and anchored by ESPN’s betting show and dedicated social and digital channels.
ESPN and Penn reached a 10-year, $2 billion deal in 2023, under which ESPN received $150 million annually and was granted warrants to purchase Penn common stock. In exchange, ESPN provided Penn with media, marketing services and the exclusive use of its ESPN Bet brand in the U.S. ESPN Bet’s market share was reportedly in the single digits for most of last year and this year.
The companies said that all outstanding payments to ESPN will end in the fourth quarter of 2025. ESPN will work with Penn to facilitate a transition from ESPN Bet to theScore Bet, the online sportsbook, and Penn will continue to be an ESPN advertising client, according to the news release.
“When we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space,” Penn Entertainment CEO and president Jay Snowden said in a release. “Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration. We plan to realign our digital focus on our growing iCasino business, while continuing to capitalize on our omnichannel advantage as the nation’s leading regional retail casino operator.”
ESPN chairman Jimmy Pitaro said in a statement that “ESPN drove over 2.9 million new users into the Penn ecosystem, with a strong uptick in first-time bettors this fall” and the company is “now pursuing other media and marketing opportunities within this space.”
Advertisement
In a separate release regarding ESPN’s DraftKings partnership, Pitaro said the company’s “betting approach has focused on offering an integrated experience within our products,” and the partnership would “allow us to build upon that foundation, continue to super-serve passionate sports fans and grow our ESPN direct-to-consumer business.”
Editor’s note: The Athletic has a partnership with BetMGM.
Spot the pattern. Connect the terms
Find the hidden link between sports terms
Play today's puzzle
Alex Andrejev is a senior editor on the news team. Before joining The Athletic, she covered NASCAR and Charlotte FC for The Charlotte Observer and was a reporting intern on the sports desk for The Washington Post. She grew up near Washington, D.C.

source